More than 1,000 jobs will be created in the north-east after plans for a new £1.5billion oil field were backed by the UK Government.
Premier Oil said the Catcher area – about 124 miles east of Aberdeen – was expected to produce 96million barrels of oil with a peak production rate of about 50,000 barrels of oil per day.
The first oil is expected in mid-2017, and the firm praised a Westminster tax break for allowing the project to go ahead.
Industry body Oil & Gas UK said the development was a huge boost for the North Sea, which is currently in the midst of an exploration crisis.
Premier chief executive Simon Lockett said the development had been “facilitated by the government’s small field allowances”.
UK Energy Minister Michael Fallon said: “The Catcher area development shows that there continues to be an extraordinary level of interest in North Sea oil and gas, which is excellent news for industry and for the whole of the UK.
“The project represents over £1billion of investment and almost all of the subsea expertise and equipment needed for this development is being supplied by British companies.”
Oil & Gas UK’s operations director, Oonagh Werngren, said: “This is yet another clear sign that opportunity remains in the North Sea, and it reiterates the importance of ensuring the UK Continental Shelf continues to offer a stable fiscal environment where such investments can proceed.”
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